Strengthening rupee and weakening global crude oil prices have once again brought respite to daily commuters in India. Fuel pries have been slashed for 13th consecutive day today.
Petrol prices have been cut by Rs 0.20 in Delhi and Mumbai, bring down rate to Rs 79.55 per litre in Delhi and Rs 85.04 per litre in Mumbai.
Diesel prices have been cut by Rs 0.07 in Delhi and Rs 0.08 in Mumbai. The retail prices for the diesel has reached Rs 73.78 per litre (Delhi) and Rs 77.32 per litre in Mumbai.
The rates are off their record high of Rs 84 per litre for petrol and Rs 75.45 a litre for diesel touched on October 4. On that day, the government decided to cut excise duty on petrol and diesel by Rs 1.50 per litre each and asked state-owned fuel retailers to subsidise by another Re 1 a litre by reducing their margins.
Subsequent to this, the petrol price came down to Rs 81.50 per litre and diesel at Rs 72.95 a litre on October 5.
But as the international oil prices continued to rise, price of petrol and diesel in Delhi increased to Rs 82.83 per litre and Rs 75.69 per litre by October 16. But beginning October 18, international oil prices have been falling and rupee has also appreciated.
The twin factors have brought down fuel prices to two-month low. "As per the assessment, the retail prices of petrol and diesel may reign easy in the next few days," an official statement had said on October 26.
The retail selling price of petrol and diesel is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate. This is because a large proportion of country's requirement is met through imports.